What's happened
The US has ended its de minimis exemption for small packages, affecting imports from China, Europe, and other regions. Customs duties will now apply to packages valued at $800 or less, leading to disruptions in international shipping, higher costs for consumers, and delays as postal services adapt to the new regime.
What's behind the headline?
The removal of the de minimis exemption will significantly reshape international e-commerce and postal logistics. Major postal operators in Europe, Asia, and Oceania have already paused or restricted shipments to the US, citing unclear compliance procedures and increased operational burdens. DHL, for example, has temporarily suspended parcel services for businesses, highlighting the logistical chaos. This move benefits US customs enforcement and aims to reduce narcotics and tariff evasion, but it also risks harming small businesses and consumers who rely on affordable international shipping. The policy signals a shift towards stricter border controls, but the lack of clarity on enforcement and costs may prolong disruptions and increase prices for imported goods, especially from China. The broader impact will likely include a slowdown in cross-border e-commerce, higher consumer costs, and a reevaluation of global shipping strategies, with many postal services and retailers seeking alternative routes or delaying shipments until new procedures are clarified.
What the papers say
The Japan Times reports that the US Customs and Border Protection began collecting flat-rate duties of $80 to $200 per package, ending the longstanding de minimis exemption. Al Jazeera highlights that over 30 countries, including Australia, Germany, Japan, and Mexico, have suspended shipments to the US amid the transition, with DHL and other logistics firms citing unresolved questions about customs procedures. The Independent notes that Chinese retailers like Shein and Temu have been impacted, with increased import costs and delays affecting UK consumers. Bloomberg emphasizes that the policy change will cause disruptions in international postal services, with many postal operators pausing shipments to the US, and warns of higher prices and delays for small-value goods. Business Insider UK details that the policy was signed by Trump in May, calling the exemption a 'catastrophic loophole,' and forecasts that the new regime will lead to higher consumer prices and logistical chaos. Overall, the sources agree that the policy shift aims to curb narcotics and tariff evasion but will cause significant short-term disruptions in global shipping and e-commerce.
How we got here
The de minimis exemption, in place since the 1930s and raised to $800 in 2015, allowed small packages to enter the US duty-free. The Trump administration's decision to eliminate this exemption aims to curb narcotics and tariff evasion, but it has caused widespread disruptions in global logistics and e-commerce, especially affecting Chinese retailers and international postal services.
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